Skip to content

Latest commit

 

History

History
8 lines (5 loc) · 643 Bytes

File metadata and controls

8 lines (5 loc) · 643 Bytes

Seigniorage (algorithmic) Stablecoins

Seigniorage (or algorithmic) stablecoins can be linked to a decentralized autonomous organization which controls issuance and pricing. The supply of algorithmic stablecoins is typically controlled by issuing and destroying coins depending on the market demand, until the target price is reached. In the general case, market participants are incentivized to act in a way that the price is kept at target level by issuing either bonds, in times of decreasing price or seigniorage shares when the price is above target.

Notable algorithmic stablecoins:

  • Basis (project was cancelled)
  • Fragments